When tough times hit financially it can be hard to know where to turn, or what solution to try. There are all kinds of ways to get in debt, but getting out of debt does not seem to be as easy. You can try different approaches to managing your debt, like refinancing your house or taking out a credit card consolidation loan, but sometimes the best answer is to file for bankruptcy. Bankruptcy is a way to get rid of or at least greatly reduce your debt load, and it provides an instant lift from financial and collections pressures.
There are two types of bankruptcy chapters, and you will need to lay out your finances to a legal professional to find out what type of case you qualify to file. But before you do that, here are three things to do before you file a case:
• Gather all of your debt information and add up what you owe. It can be surprising to see your total debt figure on paper, but once you have the amount in front of you the decision to file will make more sense.
• Look at areas of your budget where you can cut back, because it is possible you may have to change your spending habits after your bankruptcy case ends. Being prepared for this change now will make the transition smoother.
• Decide what pieces of personal property you need to keep. Nearly everyone needs to keep their car, and you are allowed to do this during a bankruptcy provided you keep making the payments. But there may be other things you can live without, like a motorcycle or boat, and eliminating these expenses will help make your budget more manageable.
Having a good handle on what your finances look like before you file bankruptcy, and how they will look after is the first step to having a successful case. When you can see that the change in monthly expenses is a decrease in what you spend each month, saving money for an emergency becomes a possibility rather than a dream. If you are not able to pay all of your bills, if you have been hit with an unexpected expense that you can’t pay, or if your income has gone down drastically, call us for help. We will let you know if bankruptcy is right for you, and what you can expect from filing a case.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com.
